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Yi Gang Dissects Monetary Policy’s Frameworks and Best Practices

Mar 25-2024   



On March 22, Mr. Yi Gang, Director of the Governing Council of China Society for Finance and Banking, gave a lecture titled Monetary Policy: Frameworks and Best Practices at Chengze Garden, Peking University. This was the fifth lecture in the Central Bank Governor Lecture Series, part of NSD’s Policy Talk. It also kicked off a series of lectures celebrating the 30-year anniversary of the NSD.

 

Mr. Yi Gang is one of the founding professors of China Center for Economic Research (CCER), the predecessor of the NSD. He presided over the early work of CCER and initiated and facilitated the establishment of graduate, dual-degree, and MBA programs. In 1997 he joined the People’s Bank of China, taking on a succession of roles as Secretary General of its Monetary Policy Commission, Director of Monetary Policy Department, Deputy Governor with concurrent position as Director General of the State Administration of Foreign Exchange, and Governor. His research focuses on monetary affairs, banking, and the Chinese economy.

 

Mr. Yi Gang began his lecture with an introduction of interest rates and relevant economic theories, in particular the Taylor Rule (for guiding short-term counter-cyclical adjustments) and the Golden Rule (for maintaining long-term optimal trajectory and equilibrium). He then gave detailed analysis of the historical development of China’s marketized interest rate reform by focusing on deposit and loan rates, financial market rates, and central bank rates. He said that the reform has been rooted in China’s national conditions throughout the whole process, taken China’s practical issues as the starting point, always adhered to the people-centric philosophy, and safeguarded the interests of the great majority of the people. The course of the reform demonstrates that the socialist market economy, by using the market as the predominant way of resource allocation, has achieved a much higher efficiency than planned economy, and the great majority of the people have enjoyed much better welfare. Mr. Yi devoted the last part of his lecture to analyzing interest rate system, interest rate adjustment and control framework and monetary policy adjustment and control philosophy.

 

He then took questions from the packed audience. Prof. Huang Yiping, Dean of the NSD, hosted the event, which was participated by Lei Xiaoyan, NSD CCP Chief; Huang Zhuo, NSD Associate Professor; and about 200 teachers and students from the NSD and the PKU Institute of South-South Cooperation and Development (ISSCAD).

Yi Gang Dissects Monetary Policy’s Frameworks and Best Practices

Mar 25-2024   



On March 22, Mr. Yi Gang, Director of the Governing Council of China Society for Finance and Banking, gave a lecture titled Monetary Policy: Frameworks and Best Practices at Chengze Garden, Peking University. This was the fifth lecture in the Central Bank Governor Lecture Series, part of NSD’s Policy Talk. It also kicked off a series of lectures celebrating the 30-year anniversary of the NSD.

 

Mr. Yi Gang is one of the founding professors of China Center for Economic Research (CCER), the predecessor of the NSD. He presided over the early work of CCER and initiated and facilitated the establishment of graduate, dual-degree, and MBA programs. In 1997 he joined the People’s Bank of China, taking on a succession of roles as Secretary General of its Monetary Policy Commission, Director of Monetary Policy Department, Deputy Governor with concurrent position as Director General of the State Administration of Foreign Exchange, and Governor. His research focuses on monetary affairs, banking, and the Chinese economy.

 

Mr. Yi Gang began his lecture with an introduction of interest rates and relevant economic theories, in particular the Taylor Rule (for guiding short-term counter-cyclical adjustments) and the Golden Rule (for maintaining long-term optimal trajectory and equilibrium). He then gave detailed analysis of the historical development of China’s marketized interest rate reform by focusing on deposit and loan rates, financial market rates, and central bank rates. He said that the reform has been rooted in China’s national conditions throughout the whole process, taken China’s practical issues as the starting point, always adhered to the people-centric philosophy, and safeguarded the interests of the great majority of the people. The course of the reform demonstrates that the socialist market economy, by using the market as the predominant way of resource allocation, has achieved a much higher efficiency than planned economy, and the great majority of the people have enjoyed much better welfare. Mr. Yi devoted the last part of his lecture to analyzing interest rate system, interest rate adjustment and control framework and monetary policy adjustment and control philosophy.

 

He then took questions from the packed audience. Prof. Huang Yiping, Dean of the NSD, hosted the event, which was participated by Lei Xiaoyan, NSD CCP Chief; Huang Zhuo, NSD Associate Professor; and about 200 teachers and students from the NSD and the PKU Institute of South-South Cooperation and Development (ISSCAD).